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Grain: World Markets and Trade
Foreign Agricultural Service Circular Series
FG 04-03

April 2003 


New Suppliers Displace EU in Shrinking World Flour Trade

Bar chart of world flour trade by new suppliers, other old suppliers, and EU from 1996/97 to 2002/03

World flour trade has dropped 30 percent in just the past 7 years as global market dynamics have changed. Expanding milling facilities have shifted demand from imported flour to imported wheat. New, private, quality-conscious mills now dominate many of the major markets. These buyers tend to buy small hand-to-mouth wheat cargoes. This contrasts to the monolithic, government buyers that preferred large quantities for deferred shipment. For example, Yemen and Algeria–once the world’s largest flour buyers of over 1 million tons each per year–now import only a fraction of those levels. They both now rely almost entirely on domestic flour production. 

Competition has increased for the shrinking flour market. New, efficient, regional flour suppliers have grabbed market share by providing quicker delivery, smaller shipments, and cheaper transportation to quality-sensitive buyers. For example, the UAE has built state-of-the-art, highly efficient mills to supply markets throughout the region. Also, the FSU and India have built new mills for the production of flour to export to surrounding countries. In contrast, the EU–once the world’s dominant flour supplier–has seen its exports drop nearly 60 percent. Many French mills, which were built near ports for export, have slashed capacity in half or closed, whereas a third of Italy’s mills have already closed.


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Green ball image Historical Data Tables: Selected Regions and Countries

Green ball image Notice to readers: 
The Grain: World Markets and Trade circular series no longer includes a printed version of the Historical Data Series for Selected Regions and Countries.  Beginning with the January 2003 publication, these historical tables will be available only electronically.  The historical tables, along with an electronic version of the Grain: World Markets and Trade circular are available via the FAS website (http://www.fas.usda.gov/grain/).  The printed version of the circular will continue to include the Summary Tables and the Situation and Outlook reports.

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Last modified: Thursday, November 13, 2003